WASHINGTON, D.C. – More than 150 environmental organizations today urged the Biden administration in a letter to promote a “climate peace clause” and other pro-environment measures during upcoming trade forums in order to prevent international trade pacts from being used to undermine countries’ climate initiatives.
“The Biden administration has been outspoken about the need to better align trade policies with the imperative of meeting critical climate goals,” said Arthur Stamoulis, executive director of the Trade Justice Education Fund. “A peace clause is an important first step towards ensuring trade pacts no longer get in the way of climate initiatives at home and abroad. We strongly encourage the administration to promote a climate peace clause and related measures in all relevant fora, including the WTO, the G7 and as a provision in the proposed Indo-Pacific Economic Framework.”
In a letter addressed to U.S. Trade Representative Katherine Tai, groups specifically asked the U.S. to secure a peace clause under which World Trade Organization (WTO) member states agree not to use trade rules to attack one another’s climate policies, as well to take additional steps to end the investor-state dispute settlement (ISDS) system, which allows transnational corporations to bypass domestic court systems to attack climate and other policies in trade tribunals.
Signers of the letter include the Sierra Club, National Resources Defense Council (NRDC), the Center for International Environmental Law (CIEL), Greenpeace USA, ActionAid USA, Food & Water Watch, Oil Change International, 350.org and state and local climate groups from 46 states across the country.
“With less than a decade to turn the corner on the climate crisis, we simply do not have time for outdated trade agreements that can be used to attack and undermine climate action,” said Hebah Kassam, acting director of the living economy program at the Sierra Club. “We urgently need a climate peace clause that puts a moratorium on the use of trade and investment agreements to challenge policies directly related to achieving climate goals. The gravity of the climate crisis demands these protections.”
The letter comes as the U.S. prepares for the U.S.-ASEAN Summit, the World Trade Organization (WTO) Trade and Environmental Sustainability Structured Discussions (TESSD), and the Trade and Technology Council (TTC) meeting, where major trade issues, including climate policies, will be discussed.
Trade agreements have increasingly been weaponized to undermine climate policy in recent years. One of many examples of state-to-state trade disputes includes the U.S. successfully challenging India’s national solar program, and India successfully challenging renewable energy programs in eight U.S. states that included “buy-local” rules. With respect to ISDS cases, TC Energy is seeking $15 billion under the US Mexico Canada Agreement (USMCA) over the U.S.’ refusal to grant operating permits for the Keystone XL Pipeline.
“A Climate Peace Clause is not just common sense, it’s in the common interest. We cannot afford to let trade or investment law thwart action needed to avert climate catastrophe,” said Nikki Reisch, director of the climate & energy program at the CIEL. “It’s not enough to keep ISDS out of new agreements. Governments must prevent investors from using existing agreements to deter or penalize action to phase out fossil fuels. Otherwise, armed with ISDS, polluters will continue to hold climate policy and our collective future hostage.”